The revised offer is worth ~C$555M, or $3.56/share; HBM is offering 0.315 of its shares for each AZC share, the same as its initial hostile bid, but it is now adding 0.17 of a warrant for each AZC share to facilitate a friendly deal.

The deal gives HBM the Rosemont project in Arizona, one of the world’s most promising undeveloped copper deposits, with 7B lbs. of copper reserves and resources.

Desjardins analyst Jackie Przybylowski says the news could encourage AZC shareholders to tender to HBM’s bid, noting that HBM had said permitting for Rosemont would take much longer than AZC was planning.

Laurentian Bank's Christopher Chang thinks Rosemont will get permitted, but AZC shareholders will get increasingly impatient if there are more delays.

CIBC's Tom Meyer puts less weight in the news, saying further permitting delays are not surprising and are factored into the current share price.

Augusta Resource (AZC+3.2%) says nine parties, including "significant industry players," had expressed interest in the company in response to its strategic review process, as it tries to find a white knight bidder to fight off HudBay Minerals' (HBM+1.8%) hostile takeover bid.

AZC says it will hold site visits to its Rosemont copper project, which is near construction, over the next few weeks.

AZC also says it will hold a shareholder meeting May 9 to keep the poison pill put in place last year when HBM started building its stake in AZC.

HudBay Minerals (HBM+3.4%) CEO David Garofalo tears into the management at takeover target Augusta Resources (AZC+1.6%), calling the company "essentially insolvent" and warning that its shareholders were at risk without a quick wrap-up in permitting for its Rosemont copper project.

AZC said this week that it expects to receive its final required permit for Rosemont in H1 of this year, while HBM contends the permitting process will take much longer and could cause serious liquidity problems, noting that a $109M loan comes due in July.

AZC "really [has] no money, they have significant debt, and that debt is coming due very soon," Garofalo says, adding that two permits AZC has obtained are facing legal challenges, which could delay planned funding from Silver Wheaton (SLW).

AZC’s Rosemont copper project in Arizona is large enough to attract other producers including OZ Minerals (OZMLF) and Teck Resources (TCK), Laurentian Bank of Canada says, estimates the company’s value is at least C$3.89/share based on similar deals.

Freeport McMoRan (FCX) is another possible suitor with the financial strength to outbid HBM, according to National Bank Financial.

“HudBay’s offer has little chance of success at its current valuation,” says a Toronto Dominion analyst.